WHEREAS, the effects of the recent calamities which befell the country tended to raise prices of the basic necessities of life including rentals for housing;

WHEREAS, the Government through various measures have successfully been able to stabilize the prices of basic commodities, and it is essential that rentals for housing should likewise be stabilized; and

WHEREAS, the freezing of rentals for the lower income group at their present levels is desirable as the equitable levels for both the lessor and the lessee;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby adopt and make as part of the law of the land certain amendments to the provisions of Republic Act No. 6359, which shall read as follows:

"SECTION 1. No lessor of a dwelling unit or of land on which another's dwelling is located shall, upon promulgation of this Decree and until otherwise provided, increase the monthly rental agreed upon between the lessor and the lessee, as of the effectivity of this Act when said monthly rental does not exceed three hundred (P300.00) pesos a month."

"SEC. 3. No lessor of a dwelling unit or of land on which another's dwelling is located may demand a deposit, for any purpose, of any amount in excess of two month's rental in advance."

"SEC. 4. Except when the lease is for a definite period, the provisions of paragraph (1) of Article 1673 of the Civil Code of the Philippines insofar as they refer to dwelling unit or land on which another's dwelling is located shall be suspended until otherwise provided; but other provisions of the Civil Code and the Rules of Court of the Philippines on lease contracts, insofar as they are not in conflict with the provisions of this Act, shall apply."

"SEC. 5. Any person violating any provisions of this Act shall be punished by imprisonment of not less than one year nor more than five years and a fine of not less than five thousand pesos nor more than ten thousand pesos."

This Decree shall take effect immediately.

Done in the City of Manila, this 12th day of October, in the year of Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary